UPDATE: Barclays Upgrades AT&T (T) to Overweight

(Updated - June 23, 2015 10:40 AM EDT)

Barclays upgraded AT&T (NYSE: T) from Equalweight to Overweight with a price target of $39 (from $34). Analyst Amir Rozwadowski noted multiple favorable levers at AT&T, and he thinks the close of its DIRECTV (NASDAQ: DTV) deal could spur positive earnings revisions.

"Following our recent headquarters visit, our analysis suggests that despite expectations for ongoing competitive pressure in the U.S. wireless market, the number of levers (i.e. revenue and cost synergies) that could positively impact AT&T’s bottom line post the imminent close of the DIRECTV transaction are too material to ignore. In our view, this combination of dissipating external (i.e. earnings deceleration due to increased competition) and internal (i.e. dividend coverage, leverage ratios etc.) concerns coupled with the prospect for a positive earnings revision cycle coming out of the close of the deal leads us to shift to a relative Overweight rating," said Rozwadowski.

For an analyst ratings summary and ratings history on AT&T click here. For more ratings news on AT&T click here.

Shares of AT&T closed at $35.04 yesterday.

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